This section contains information about current and past rate structures. Water rates are reviewed throughout the year and are typically adjusted once per year. Two components are factored into calculating water rates.

• the Water Department budget which is funded through water rates and fees.
• a usage forecast for the coming fiscal year which is based on historical water use, anticipated growth and other factors.

Over the past several years water consumption has declined due to customer's conservation efforts, water bans and shifts towards alternative sources by some of our customers. There are some direct savings with using less water including lower electrical and treatment chemical use. However, these reductions have been offset, and in some cases usurped, by higher unit costs for electricity and potassium hydroxide.   Equal or higher expenses distributed over fewer billable gallons increases the cost per gallon.

Although conservation can lead to higher costs per gallon, the real benefits of conserving are hidden. It is hidden in maintenance and system upgrades that can be deferred or cancelled due to lower system demand.

A local example is that prior to the recent trend towards lower use, we were actively searching for a new source to meet summer time demands.  The new source is no longer needed due to conservation efforts which have likely saved several millions of dollars in development, permitting and legal expenses needed to bring a new source online.